Marketing to Hispanics is complex, but essential - Guest Column

DSN Retailing Today, April 21, 2003 by Linda Lane

It's official: Hispanics are the largest minority in the United States--13% of the population. This represents a marketplace the size of a European country. Targeting the $450 billion buying power of this fast-growing market can expand your customer base and boost sales--if you do it right.

Marketing to U.S. Hispanics is not simple. In fact, it's filled with challenges. The U.S. Hispanic is not one marketing segment, but many. Sure, all Spanish-speaking persons are, clustered under one umbrella marked "Hispanic" or "Latino," but Hispanics are a richly diverse group representing 17 Latin American countries plus Puerto Rico and the Caribbean. Cultural traits, traditions and points of reference vary widely. Add differences in age, language proficiency, acculturation, economic level and race--Hispanics are a colorful mix of black, white and Indian--and you have a complex marketing puzzle.

To get results, focus on similarities that transcend ethnic and cultural differences. More than 75% of U.S. Hispanics speak Spanish at home and 67% are most comfortable reading Spanish publications. Even if they read and speak English fluently, 95% of Hispanics consume some form of Spanish language media each day. It's easiest to reach the full spectrum of Hispanics in Spanish. With more than 332 Hispanic magazines and 550 Hispanic newspapers nationwide, the opportunities for language-specific ads are plentiful. However, only a few cities--New York, Miami and Los Angeles--have major Spanish-language newspapers. More importantly, research shows that Hispanics prefer television and radio over newspapers and magazines. Spanish-language television and radio are your most effective vehicles for targeting this market.

Hispanics are younger than other demographic groups, with larger families. Bigger families mean longer shopping lists. Hispanics outspend other groups for groceries, furniture and children's and men's clothing.

Hispanics purchase more used cars than other groups, with an escalating need for aftermarket products and related items such as baby carriers and booster seats. Over the next decade, youthful Hispanics will be buying more homes and more home furnishings. Are you beginning to understand how this segment can make your cash register sing?

Hispanics tend to buy based on brand recognition, preferring what they already know and like. The risk of disappointment outweighs any benefits of buying "off-brand"--including lower cost. Eighty percent are willing to pay more for quality brands. Language barriers often limit buying options. Roughly 70% of U.S. Hispanics were born outside the United States. Many are still learning English, and speak only Spanish at home. This makes comparison-shopping, or brand hopping, difficult.

Display popular name brand products or logos prominently. Post all information relevant to guarantees and return or exchange policies in Spanish, as well as English. In-store demos and sampling are more effective than coupons for introducing new products.

Rather than considering shopping a chore, most Hispanics view shopping as another family or social event. Often, the entire family embarks on trips to the store or mall. Hispanic women like shopping with relatives, their girlfriends and their children. This results in heightened impulse buying, more than for any other group.

You can take advantage of this tendency for impulse buying with in-store advertising and promotions that are culturally appropriate and "in language" for your targeted market. Work to make retail spaces more family friendly. When feasible, create displays or play areas for children and add extra seating in waiting areas.

Hire Hispanics, engage Hispanic vendors, sponsor Hispanic events and donate time or money to support charitable efforts.

By becoming more involved in the Hispanic culture, Hispanic customers will become more involved in your business.

Linda Lane Gonzalez is founder and president of the VIVA Partnership, a full-service US. Hispanic marketing, advertising and public relations firm with expertise in the retail industry.